DC Advisory Italy advises Xenon Private Equity on the acquisition of a majority stake in CBG Acciai

Background :

• C.B.G. Acciai (CBG) is a leading Italian producer of high precision blades, with over 90 years’ experience in the market, and is currently run by the fourth generation of its founding family – the Filippini family
• BG, based in the province of Milan, is involved in the manufacturing of a wide range of high precision steel blades such as those used for cutting wood, foam and stone
• CBG has a strong market position which is supported by a c.14,000m² plant dedicated to stock production
• CBG also has a strong international footprint with c.90 distributors and agents worldwide
• Xenon is a well-known Luxembourg based private equity investor, focused on investing in small and medium Italian industrial companies

Process :

• In March 2019, the Filippini family was approached by an industrial player who showed an interest in acquiring CBG
• Given the family’s desire to remain involved in the next phase of growth for CBG, they explored a solution with a financial sponsor in line with their strategy for international expansion
• DC Advisory was engaged by Xenon, identified as the perfect partner for CBG, to provide M&A advice in relation to the acquisition

Outcome :

• On 7 November 2019, Xenon announced the acquisition of a 65% stake in CBG from the Filippini family, who will retain a 35% shareholding
• Xenon will support the management team in its next phase of development and international expansion
• Terms of the transaction were not disclosed